Union Minister for Road Transport and Highways Nitin Gadkari told the 66th Annual Convention of the Society of Indian Automobile Manufacturers in New Delhi that India’s automotive sector, currently valued at more than Rs 22.75 lakh crore, has the potential to become the world’s largest automobile industry given the country’s quality, innovation, research and competitive pricing. Gadkari said the sector contributes nearly 15 percent of India’s GST collections and supports around four crore direct and indirect jobs.
The convention, held on September 3, 2026, at Hotel Taj Palace, New Delhi, under the theme “Changing Global Dynamics: Leveraging Opportunities,” closed with a valedictory session addressed by Union Minister of Commerce and Industry Piyush Goyal. Gadkari highlighted that India’s automobile exports grew 24 percent during 2025-26, underscoring the sector’s expanding role in the country’s manufacturing and trade profile as it works toward the government’s “Viksit Bharat” development goals.
Why Does SIAM’s 2026 Convention Matter for India’s Auto Sector?
The convention’s focus on “Changing Global Dynamics” reflects how Indian automakers are positioning themselves amid shifting global trade patterns, supply chain realignment and rising competition from other manufacturing hubs. With exports already up 24 percent in 2025-26, sessions on leveraging global opportunities signal industry intent to accelerate international expansion rather than rely solely on domestic demand growth.
What Does This Mean for Jobs and the Broader Economy?
A sector supporting four crore direct and indirect jobs and contributing 15 percent of GST collections carries outsized weight in India’s economic policy calculus. Gadkari’s framing of the industry as central to Viksit Bharat, the government’s vision for a developed India, suggests continued policy support, including infrastructure and possibly further incentive schemes, aimed at helping the sector scale toward global leadership.
Market Reaction and Industry Response
Industry leaders at the convention, including dedicated plenary sessions on AI’s role in transforming product development, manufacturing and customer experience, signalled that automakers are prioritising technology adoption alongside export growth. The presence of both Gadkari and Goyal as chief guests across the opening and valedictory sessions reflects the government’s continued engagement with the sector as a strategic economic priority.
What Happens Next?
Automakers are expected to translate convention discussions on AI adoption and sustainable mobility into concrete investment plans over the coming quarters, with a special plenary session having addressed India’s roadmap to become a global leader in sustainable mobility by 2047. Trade watchers will track whether the 24 percent export growth rate from 2025-26 can be sustained as global demand conditions evolve.
Frequently Asked Questions
How large is India’s automotive sector according to SIAM’s 2026 convention?
Nitin Gadkari said the sector is valued at more than Rs 22.75 lakh crore, contributing nearly 15 percent of India’s GST collections and supporting about four crore direct and indirect jobs.
How much did India’s automobile exports grow in 2025-26?
India’s automobile exports grew 24 percent during 2025-26, according to Gadkari’s address at the SIAM convention.
What was the theme of SIAM’s 66th Annual Convention?
The convention’s theme was “Changing Global Dynamics: Leveraging Opportunities,” held September 3, 2026, at Hotel Taj Palace, New Delhi.
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